Fieldly said that while they are seeing some shortages in aluminum cans, most Celsius flavors remain in stock and will be readily available for the summer season. The company continues to expand distribution.
Celsius is now the No. 3 energy drink brand behind Monster (MNST) and Red Bull, and Fieldly noted that the energy drink market is growing, thanks to the focus on promoting active, healthy lifestyles.
Let's check out the charts.
In this daily bar chart of CELH, below, we can see that CELH has made a tremendous rally from around the $5 area just one year ago. Prices soared and tested the $70 area a number of times over the past three months. Prices traded sideways in January and February and then started to break lower this month. CELH broke below the rising 50-day moving average line but then rallied back above it before gapping below it.
Prices have made new lows for the move down this month and the 50-day moving average line is cresting. The slope of the slower-to-react 200-day moving average line is still bullish.
The On-Balance-Volume (OBV) line has been flat to rolling over since the middle of January and tells us that traders have shifted from being aggressive buyers to being aggressive sellers. The trend-following Moving Average Convergence Divergence (MACD) oscillator has weakened from late January and is now below the zero line in sell territory.
In this weekly Japanese candlestick chart of CELH, below, we can see a weakening picture. Notice the several upper shadows above $65? The weakening OBV line? The bearish crossover of the two moving averages that make up the MACD oscillator?
In this daily Point and Figure chart of CELH, below, we can see a potential downside price target of $23. I would anticipate some chart support in the $25-$20 area looking at the weekly candlestick chart above.
In this second Point and Figure chart of CELH, below, we used weekly price data. The software is projecting a possible $17 target. Almost a round trip from the base around $5.
Bottom line strategy: The company may be still growing the business but the charts of CELH suggest we could see further declines in the weeks ahead.